Global Member Meeting. Casablanca, Morocco May Fundraising Essentials

Transcription

1 Global Member Meeting Casablanca, Morocco Fundraising Essentials Session 2: - how to apply to and approach donors - systems and processes to put in place to respond to donors - List of Handouts Robert Wilkinson (Associate, BOND)

2 HANDOUTS 1. Objectives of session 2. Four stages in making approaches 3. Donor mapping 4. GIFTED advice for informal meetings 5. Managing donor meetings and donor visits 6. Ten tips on effective proposal writing 7. Selling ideas to donors and writing a winning proposal 8. Advice on hard-to-write sections of a proposal 9. Example of a due diligence framework 10. Due diligence notes from the Asia Foundation 11. Theory of Change elements and processes

3 Fundraising Essentials: Objectives of Sessions 1. Session 1-19 May, How to go about successful fundraising (i.e. developing a plan or strategy). Why? why a fundraising plan/ strategy is useful What? what it covers internal resource mobilisation issues as well as donor mapping and targeting How? how to develop a funding strategy; what tools and processes might be used How to identify different sources of funding. Identifying different types of income stream and how they might be relevant (project/ research grants, development funding; intermediary funding e.g. partnerships/ sub grants from INGOs; earned income (enterprise); use of social media (crowdfunding etc) Existing resources to help identify funders and their priorities (including the GnB resource); pros and cons of using consultants; tools such as donor mapping, competitor analysis Session 2 20 May How to apply to and approach donors (i.e. how to build relationships with donors). Relationship mapping; relationship cultivation and management; donor compliance and grant management; the importance of all-round relationships beyond the proposal/ compliance cycle How to make the ask The key components of a funding proposal Tips on effective proposal writing including addressing the hard to write sections (e.g. monitoring systems; impact; value for money; risk/assumptions) What systems/processes need to be in place in order to apply/respond quickly to donors (i.e. due diligence, developing a core case for support). The importance of a robust funding cycle and internal review/ approval processes Due diligence what is it, and how to prepare standard responses, e.g. on legal status; governance; policies; systems; finances; human resources, partnerships etc Building a corporate c v Mission, Vision Values; Theory of Change; Demonstration of track record; Key personnel bios; Case studies/ success stories; Endorsements; Capacity Statements (technical capacity), etc Handout 1

4 The Four Stages in Making Approaches Source: Bill Bruty BOND Associate Stage One: Identification and Evaluation Does the Funder support the activities you want funded? Can they give you the funding you need? Are they accepting applications? Stage Two: Awareness Raising Does the Funder know who you are? Do they know what you do? Have you told them? Stage Three: Exploring the Opportunities An exchange about respective needs Active listening by both parties Resulting in a mutually agreed proposal Stage Four: Making the Agreement A successful proposal should be the result of input from both parties Failure is usually because of insufficient recognition of the genuine needs of the funder Rejection Start Again Success Start Immediately on Preparing the Donor for the Next (Bigger) Approach Handout 2

5 Donor Mapping - example Understanding the funding environment involves bringing together knowledge of donors at country level and at home office level. It also involves understanding the overall trends in aid and development cooperation, and how these might impact on funding prospects. The process brings together the knowledge of a range of people in the organisation and partners, and is one that should continue to be developed through the life of the funding strategy as part of the process of donor relationship-building. The matrix below was developed with an international NGO with head office in Europe and a number of country programmes. It can be easily adapted for use by other types of organisation. Robert Wilkinson, Associate, BOND 1

6 COUNTRY LEVEL FUNDING PROSPECTS: DATE: [COUNTRY] COMPILED BY: Please share your knowledge and experience on funding prospects, ideally by using the matrix suggested below: 1. New donors: which donors do you see as potential funders for your country programme that are not already donors to [NGO]? [Include bilateral/ multilateral agencies, trusts and foundations, corporates] 2. Existing donors: identify donors on [NGO] s current list that you know are funding relevant work in your country for other organisations, but not for [NGO]. 3. Why do you think that [NGO] has not accessed these donors in your country? DONOR AGENCY WHO/ WHAT/ WHERE THEY FUND TRENDS Example: Donor A Funding only in X region Prefer to fund local NGOs; will support capacity building programmes by INGOs Reducing staff next year Example: Donor B Funds INGOs - Save, Oxfam Has announced new programme for health system strengthening [deadline for proposals xx/yy/zz] 20% Global aid budget cuts taking effect 2014/15 [NGO] SECTORS RELEVANT All PAST/ CONSTRAINTS CURRENT RELATIONSHIP None We do not have experience in capacity building incountry All CD has good personal contacts from previous job We have little track record with MoH in this country Time/ capacity constraints to meet proposals deadline PROSPECTS Good if we can recruit expertise in organisational development to strengthen local partners Worth following up contacts; would need technical inputs and examples from other programmes Handout 3

7 GIFTED - A formula for managing informal meetings Greetings At the start of any meeting it is you that can make the difference, lead the meeting. People give to people is the foundation of resource mobilization and as an individual you need to take control of the meeting. Make sure that there is an informal exchange at the beginning, which should be relaxed and give an opportunity for you to engage with each other as real people. Interest Creator The spark of initial conversation - always about the potential donor. Fact Finding The NGO acquires knowledge about the potential donor. It involves asking a lot of questions and listening to the answers. Turn Them On This is when the NGO presents ideas on what it could do for the donor. This is always a dialogue, an exploration of different options. Evidence Providing information to support the benefits being proposed by your project or programme. There must be evidence and facts to support any assertion. Decision Ask for the commitment - even if that is to continue discussions. It is fatal to ever leave a negotiation without a reason for it to be continued or concluded. Handout 4

8 Guidance note on meeting with donors Robert Wilkinson, Associate, BOND Preparation - What should I research? Where the donor works, and in what sectors What other organisations they fund How they work with NGOs e.g. do they have special funds for NGOs; do they prefer to work with local NGOs; do they use grants, or contracts? The types of funding programmes they have - emergency, development, small grants, cofinancing, contracts, etc. and the terms applicable to each Whether they have funded [organisation] before in [Country] or in other countries If the donor is new, has it been cleared as an acceptable donor? Where to get the information? Donor websites, and their business pages Colleagues who may have a relationship with the donor, in [Country] or in other countries Donor coordination meetings and other networks Setting up the meeting Make it clear what the purpose is: information sharing; presenting a concept note; dealing with problems on an existing grant. Check availability of colleagues to accompany you, especially if have existing relationship. Ensure you book enough time for a good meeting try to get at least one hour. What to take to the meeting If there is an existing funding relationship, make sure you have all relevant information about the project, any problems and any live issues the donor is concerned about. Clear information (factsheets) about your Organisation and Programmes/ Projects A concept note for the project you want to promote Info. on other priority funding needs (in case the donor cannot fund your project). Don t use a powerpoint in a 1:1 meeting a personal presentation is more effective What to do in the meeting Check how much time you have Let the donor start explain their priorities first, so you can adapt your presentation to fit. Ask questions: who else do they fund? what are the trends? will their policy change? Be clear are you asking for support? Are you only sharing information? Introduce yourself impress the donor be confident Describe project; the partners; the beneficiaries; use your materials incl. the concept note Explain the funding needs Clarify any follow up/ action points After the meeting Thank the donor for their time and follow up on any of the agreed action points Make a clear note of the meeting and circulate it to relevant colleagues Handout 5

9 Guidelines for Preparation of Donor Visits Who is the visit manager? Always identify one senior level staff member who has responsibility for arranging the visit. The manager should set the priorities of the visit and ensure everything is well planned. The manager should accompany the donor on site visits. What is the purpose of the visit? What are the donor s policies -why are they funding this project? Ask the donor what they are interested to see and discuss. What issues has the donor raised previously? What do we know about the individuals who are visiting? What is their job title? What do we want from the visit? What understanding do we want the donor to gain that they could not gain from narrative reports and meetings in [the capital]? Read the proposal, work plan and narrative reports: This is what the donor will read before their visit. Ensure we are prepared to answer questions on any issue that is discussed in the proposal or reports. Be prepared to discuss reasons for delays. Availability & briefing of staff: Ensure a range of staff is available to talk to the donor and that staff know key points about the donor and the project. Security briefing: provide a good security briefing to donors on arrival in the office. This will help to assure donors of the quality of our overall security management. Explain how the security situation is affecting our every-day ability to operate. Inform the beneficiaries and ask them to prepare: Give them the opportunity to prepare for the visit so that they can decide what they want to communicate and have all relevant documentation to hand. Focus on impact as well as outputs: what are the visible indicators of our results? E.g. showing the donor our schools is good but can we also demonstrate the number of children how are receiving an education as a result of our work? Selection of sites and communities: as well as showing the most successful - also visit communities where we have faced problems. This shows the context in which we are working and may help us when requesting project amendments & extensions. Visibility: what does the proposal and / or contract say about visibility? Do the communities know which donor is funding their projects? Coordination with local government: If our strategy is to work with local government, it will be interesting for the donor to meet relevant local government staff, to see the context in which they are working and discuss how they work with us. De-brief: always hold a de-brief session to understand the donor s assessment, answer any further questions, and discuss any recommendations. Feed this back to relevant staff. Ask the donor for a written report of the visit and be sure to carefully document the discussions yourself for internal reference. Handout 5

10 Ten tips on effective proposal writing Robert Wilkinson, Associate, BOND 1. Follow the format: Follow the donor format exactly; respect space limits and provide all the information required. Pay attention to donor s own evaluation grids (scoring systems) where they publish them and ensure the proposal is weighted to score the most points. If anything is not clear check with the donor. 2. Use a good precedent: use an example of a good proposal with the same donor to guide you. If you don t have one, perhaps a partner will share with you. 3. Style: avoid jargon; use clear headings and numbering; include an executive summary; use annexes for detail and supporting information. 4. Donor priorities: Understand and reference the donor s priorities and viewpoint. Be explicit about how your proposal meets them. 5. Link problem and solution: Include clear situation analysis - identify the problem, and the key actors. Make it clear how your proposal tackles the main problems identified (re-formulate if problem and solution do not match!) 6. Project design: Use a logframe or similar tool to ensure the proposal logic is strong even if the donor does not require it. 7. Budget as part of the fundraising proposal: make your budget clear and persuasive, not just a list of numbers. Use budget notes to explain, justify and demonstrate Value for Money. 8. Involve partners and beneficiaries: do this at an early stage; Partners should present a strong core case too. 9. Teamwork: Involve your colleagues (policy/ project/ finance team) at an early stage and at all review stages. Ensure enough time for review and final proofreading. 10. Connect: connect at a human level: include direct testimony, use success stories, case studies, powerful images. Handout 6

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12 Selling Ideas to Donors and Writing a Winning Proposal This handout includes two annexes from the excellent resource: Resource Mobilisation - A practical Guide for Research and Community - Based Organisations, produced by IDRC (Canada) and Venture for Fundraising. The full publication is available online at: These extracts have been included in the Handouts package with the permission of the publishers. Handout 7

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18 Effective Funding Proposals: Hard to Write Sections Robert Wilkinson, Associate, BOND Contents: I - Rationale/ problem analysis II Sustainability III Monitoring and evaluation IV- Scaling up and replication (multiplier effects) V Value for money Hard to Write sections: I - Rationale/ problem analysis A note on donor formats: Some donor application formats require the problem analysis only at the Concept Note stage. It is important, therefore, to have a sound understanding of the situation for beneficiaries, and related policy of governments and other actors at the earliest stage, since there is no opportunity later to reformulate the analysis. Getting the balance right: Because the situation analysis is usually the first section of a proposal format, it tends to be one that is addressed first, and often in too much detail. It is important to be aware of how many points this section is worth in the evaluation criteria of the donor, and to ensure that it is not over-written. Linking analysis to action: Try to ensure that the problems identified are actually the problems that your project is addressing. This sounds obvious, but it is a common weakness for proposals to describe in detail a range of issues that the activities and objectives have little connection to. Describing the process: Donors are interested to know that local stakeholders partners and beneficiaries have been involved in identifying both problems and solutions. It is important therefore to describe the process of consultation and planning that has led to this proposal. Ideally, you will refer to the sorts of planning techniques that donors expect to be followed in Project Cycle Management e.g. stakeholder analysis, problem/ objective trees, alternatives analysis, risk analysis and logical framework. Levels of analysis: You should try to cover situation analysis at the national level, the beneficiary-specific level, and linkage to the priorities of the donor. Indicate the sources you are using at different levels of your analysis: government reports, official statistics, your own situation analysis, project evaluations and the reports of other actors UN, INGOs, local NGOs, in similar fields. The donor will expect you to have done the research to establish clear baselines for your project, so do not say that your first project activity is to do a baseline study; your indicators are weak if not rooted in baselines. Handout 8

19 Hard to Write sections: II - Sustainability The European Commission (EC) asks for three aspects of sustainability to be addressed financial, institutional and policy. These categories are useful for describing sustainability for any donor. a. Financial sustainability: Include a plan for future fundraising as one of the activities Explain that the project does not involve ongoing maintenance costs there are no buildings, vehicles etc. to maintain Explain that core salaries of partner staff, government units, are all already covered Can you say with confidence that you will be long term committed to support future phases? Describe the replication strategy as one which involves government applying the model and replicating with its own resources b. Institutional sustainability: Describe partners / beneficiaries role in project management how it will increase through the period of the project, so that they can handle management of future work themselves (sustainability) Describe ownership through participation, empowerment Describe the long term impacts of working to change some negative societal attitudes, to generate a more supportive environment in the communities and in wider public opinion c. Policy level sustainability: Describe benefits of focus on specific laws, policies Benefits of better coordination between protection mechanisms at different levels and across government/ schools/ community actors leads to coherence in policy formulation and implementation Potential to influence national level, including processes such as MDG reporting Show links to any global advocacy work Describe events aimed at influencing public opinion, behaviour, attitudes Hard to Write sections: III- Monitoring and Evaluation I advise that you make it clear throughout the proposal that M&E is an integral, planned and budgeted part of project management activities, including: in the activities section (I favour a separate category of project management activities) in the description of roles of partners, associates, beneficiaries etc. in project implementation and management in the description of the Objectives and Results this is an opportunity to spell out and describe the SMART indicators If the donor format has a specific section on M&E, you should show there is a clear M&E plan: Refer to logframe for detailed SMART indicators, and means of verification describe how data will be collected participatory methods; visits, reports etc.; disaggregation by gender explain involvement of partners in M&E e.g. management committee meetings describe Evaluations mid/final term; how done participatory, External consultant. Handout 8

20 Hard to Write sections: IV- Scaling up and replication (multiplier effects) Some donor formats have specific questions about replication and multiplier effects. They may appear in different places in different formats. The issues are closely linked to other sections of the proposal, for example: - description of objectives (which should describe the high level impact the project aims for) - activities which should include replication strategies, for example work with government, other NGOs, international organisations, linkage with other programmes, specific replication plans, capacity building,, provision of technical assistance to replicators etc etc My main advice is that these issues should be specifically addressed in detail in the project activities. You should explain how replication works what you and partners will actually do to make it work, for example: systematic M&E, documentation of model or pilot approaches under project policy, advocacy and exchange of ideas and experience with government/ other replicators development of specific budgeted replication plans with relevant actors capacity building of replicators provision of technical expertise to support replication Useful cross - references: Refer to successful experiences of replication in the country programme, to demonstrate that you have a track record. Refer to your cross-organisational expertise, methodologies and approaches to demonstrate you have organisational commitment and understanding of the dimensions of scaling up, e.g.: theory of change linking advocacy, innovation, partnerships and policy work Capacity Statements for examples to show how similar projects have been scaled up. Hard to Write sections: V- Value for Money Value for Money (VfM) or cost-effectiveness is a growing concern of all types of donors and should be addressed even if the donor format does not specifically refer to it. VfM could be addressed in different places: in the activities, where you should use it as one of the factors to justify choosing specific activities in the description of equipment and other inputs in sustainability to explain that use of cost-effective methods will make it more likely for replication by other actors and long term sustainability in the Budget Notes Handout 8

21 Some ideas for demonstrating VfM are: showing a high ratio of beneficiaries to budget (low per capita spend) effective dissemination and communications strategies outreach to wide audiences use of cascading methodologies, e.g. training of trainers, peer approaches use of volunteers and contributions in kind (e.g. partners time, facilities etc.) robust procurement policy, competitive quotes, sourcing inputs locally use of local experts, trainers, researchers adaptation of existing resources communications materials etc. synergies with other projects and programmes (including those of other actors) justifying HR costs by emphasising the importance of expertise over infrastructure especially in capacity building oriented proposals. Handout 8

22 Example of a Due Diligence Framework Source: This example is extracted from a very useful overview of due diligence as seen from the perpective of Australian funders in: Due Diligence: making philanthropy work for you. (Helen Chadwick article in SVA Quarterly published by the Australian consultancy SVA Consulting). The extract relates to the conduct of due dfiligence on shortlisted organisations, following a process of review and selection which is not included here. EXTRACT: The shortlisted organisations are assessed against specific criteria that fall into five key areas. 1. Clear strategic direction 2. Evidence of impact 3. Governance and leadership 4. Financials 5. Organisational readiness The detail and emphasis placed on each area is tailored to the preferred approach of the funding strategy and preferences of the funders themselves (see an example in Table 1). Each funder will have different assessment criteria. For example, if the preference is to fund a well-established organisation or program as opposed to a start-up initiative, greater emphasis will be placed on area 1. Evidence of impact to be sure that the organisation/program has been effective. Drawing on these five key areas, specific evaluation criteria can be developed in line with the funder s objectives, strategic focus and preferred approach (see table below). Table 1. Example of assessment criteria for organisations Does the organisation/program share funder s strategic Clear strategic direction focus? Can the organisation provide a clear and consistent statement of its goals or mission? Is there a clear program logic or articulation of the issue Handout 9

23 the organisation is addressing and how its activities achieve its goals? What are other organisations doing to tackle this problem? How does this organisation work with and/or distinguish itself from these organisations and their approaches? Is there any evidence that this organisation s approach is superior? Is there a robust strategic/ business plan in place with clearly defined financial aims? Evidence of impact Is there evidence of the organisation/program bringing about positive change for a significant number of participants? (Is it a third-party impact evaluation or internal?) To what extent are you able to compare the program results against what would have happened in the absence of the program Is there a focus on consistent monitoring, learning and improving? Is there existing and future demand for the organisation s services? Governance and leadership Financials Organisational readiness Is there a desire to scale the organisation? Is there a strong, efficient and committed leader in place? Is he/she supported by a strong, efficient and committed leadership team? Is the organisation/program s leader capable of managing a process of growth? How are they viewed by others in the sector? Does the organisation/program have a solid financial history and a viable trajectory? What are its sources of funding? Is it reliant on one source? Will supporting the organisation/program result in significant impact for the targeted recipients against the amount invested? Will the investment lend to scaling impact and building Handout 9

24 sustainability? Does the organisation/program have basic finance, marketing, communications, fundraising and HR processes in place? Does the organisation/program have basic physical and technological infrastructure in place? Is the organisation/program willing to partner and collaborate? The questions are answered by assessing each of the organisations through desk research, interviewing the CEOs and or senior managers, talking to their partners and reviewing relevant documentation including financial statements, program plans and evaluations, organisational strategic plans and annual reports. Public media may also be available. Each program is evaluated against the criteria and scored for each of the five areas using the following system: Green strongly meets criteria Amber partially meets criteria Red does not meet criteria. This method allows the funder to clearly identify which organisations meet the criteria and to what level. For example, with the corporate conducting due diligence on four organisations, the assessment identified one rating for each criterion making it clear which organisations would fit the funder s strategy and intentions. Figure 3: Tabulation of the evaluation criteria results In the project mentioned above where nine organisations progressed to due diligence, any that scored red for a criterion were eliminated as were those that scored four or more amber ratings. Handout 9

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26 Due Diligence The Asia Foundation s approach The following illustration of a funder s approach to due diligence is taken from the website of the Asia Foundation at DOWNLOAD: Since its inception, the Foundation has paid close attention to the due diligence process for prospective grantees, and regularly monitors grantee programs and finances. The Foundation operates through a network of 18 offices in Asia. Through these offices, we conduct due diligence locally, with site visits to prospective grantees and extensive discussions with their principal staff throughout the life of every project. The Asia Foundation is committed to ensuring that any grants made to on-the-ground partners are not used to support any form of violent political activity or terrorist organizations. We enforce our commitment by conducting rigorous due diligence of prospective grantees. Although The Asia Foundation is a public charity as defined by the Internal Revenue Service, our due diligence process conforms to the more rigorous expenditure responsibility rules required of private foundations. In addition, the Foundation closely monitors and is in full compliance with the U.S. Government s recent regulations and guidelines regarding anti-terrorist financing practices. Organizational Due Diligence Review of prospective grantees articles of incorporation, by-laws, and other documentation to ensure the organization s charitable purpose and that it has an appropriate governance structure; Confirm registration with government authorities where this is required by local law; Automated checking of organizations and individuals against lists of ineligible recipients published by the U.S. Department of the Treasury and other federal agencies; Review of annual and other program reports to determine organizational experience, capabilities, and track record; Assess organizational reputation in-country, before local audiences; Review of financial information; Current and past budgets showing sources/uses of revenue; Periodic reports on operations and use of Foundation-granted funds; and Internal or independent financial reviews and audits depending on size of grant. Project Due Diligence Pre-grant inquiries to determine the prospective grantee s ability to comply with the terms of a grant and fulfill project objectives; A written grant agreement with specific provisions setting forth mutual responsibilities, signed by both parties; Handout 10

27 Grantees are required to maintain grant funds in a segregated bank account; Periodic written reports from the grantee to the Foundation are required through the life of the project, typically on a semi-annual basis; and Disclosure to the IRS of basic information about the grant, in the Foundation s annual 990 submission (as well as in a separate Foundation publication). Contact For more information on The Asia Foundation s due diligence capabilities and accountable grantmaking, please contact: Oliver Petzold Assistant Director, Resource Development oliver.petzold@asiafoundation.org Handout 10

28 Theory of Change Elements and Process Source: extracts from BOND course materials March 2015 Theory of Change Essentials Handout 11

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